The final Cooper Review report confirms what many of us have long known: the self-managed super fund (SMSF) sector is functioning well and is successful. In the 504-page report (including parts one and two), there were relatively few recommendations applying to SMSFs, highlighting the strength of this growing sector.
An area that did receive attention – and deservedly so – was SMSF advice. The Self-Managed Super Fund Professionals’ Association of Australia (SPAA) has long advocated for higher standards of SMSF advice. Indeed, it’s our primary reason for being. The Cooper Review is now calling for higher competencies for SMSF auditors and advisers. In particular, Cooper adopted our recommendation that SMSF auditors be registered with ASIC and that appropriate competency and independence standards be developed and policed appropriately. Anticipating higher professional standards, SPAA will soon be releasing updated SMSF adviser standards as part of our specialist accreditation program. These new standards now cover a much broader range of content for all SMSF professionals – advisers, tax agents, auditors, and accountants alike.
Previously focusing on advice, plus understanding and application of the Superannuation Industry Supervision Act, Taxation Act and Corporations Law, the new standards will now test a range of knowledge and skills across the SMSF sector, including investment strategies, managing risk and superannuation choice. Expanding the remit of our accreditation standards creates new opportunities for specialist SMSF education providers, including the range of universities that we accredit. We look forward to continuing and expanding our relationship with leading educators as the new standards are rolled out. Industry participants knew that higher professional standards would be expected. We’ve seen a significant increase in interest in our specialist accreditation programs over the past six months with a 20 per cent jump in advisers completing the program.
There are now 585 SMSF Specialist Advisers with a further 279 advisers in the process of completing the accreditation. Similarly, demand for specialist auditor accreditation grows by the day. We have had a 330 per cent increase in auditors completing the specialist auditor accreditation in the past six months, albeit from a lower base of 11 as at December 2009. For those contemplating joining the swelling ranks of SMSF specialists, you should know the process is tough, but not unreasonably onerous for those already working in the field. As you’d expect, the standards must be set at an appropriately high level. Indeed, the Cooper Review panel recognised our efforts “to increase SMSF competency by requiring advisers to complete specialised training before they can provide financial advice on SMSFs”. Our resolve in raising the bar remains.
In the case of advisers, accreditation is set at an equivalent undergraduate level, while for auditors it’s set at a master’s level equivalent. We test competencies in a 120-question online examination. In addition, specialists must have at least two years experience in SMSF-related work and be performing at least 20 per cent of their work in SMSF-related activities and advice, among other requirements. To undertake the specialist accreditation you need to be a member of SPAA.
You can join and register for an accreditation program online at www. spaa.asn.au, or contact the SPAA head office in Adelaide. With the growing public scrutiny of the quality of advice, our goal is for more trustees to understand the importance of specialist advice and to seek out SPAA-accredited practitioners. Expect to hear more from SPAA in this regard as we continue our efforts to fly the flag for SMSF specialisation and higher professional standards.
